Smith Delivery Services bought a truck by paying $44, 000 cash down and signing a $148, 000 non-interest-bearing note due in five years for the balance.Current interest rates were 8%.Actuarial information for five periods at 8% follows:
$\begin{array}{llr}
\text { Amount of 1 } &1.469\
\text { Present value of 1} &0.680\
\text { Amount of annuity of 1 } &5.867\
\text { Present value of annuity of 1 } &3.993\
\end{array}$
Required:
Compute the amount that should be charged to the asset account.

Question

Smith Delivery Services bought a truck by paying $44, 000 cash down and signing a $148, 000 non-interest-bearing note due in five years for the balance.Current interest rates were 8%.Actuarial information for five periods at 8% follows:
 $\begin{array}{llr}
  \text { Amount of 1 } &1.469\
 \text {  Present value of 1} &0.680\
 \text { Amount of annuity of 1 } &5.867\
 \text { Present value of annuity of 1 } &3.993\
\end{array}$
 Required:
Compute the amount that should be charged to the asset account.

Quizplus · Accepted Answer

The Answer of Smith Delivery Services bought a truck by paying $44, 000 cash down and signing a $148, 000 non-interest-bearing note due in five years for the balance.Current interest rates were 8%.Actuarial information for five periods at 8% follows:
 $\begin{array}{llr}
  \text { Amount of 1 } &1.469\
 \text {  Present value of 1} &0.680\
 \text { Amount of annuity of 1 } &5.867\
 \text { Present value of annuity of 1 } &3.993\
\end{array}$
 Required:
Compute the amount that should be charged to the asset account.

Smith Delivery Services Bought a Truck by Paying $44, 000